Marijuana Legislation - Excise and Licenses Office of Marijuana Policy Feedback Session February 17, 2021 - City and County ...
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1
Marijuana Legislation
Excise and Licenses
Office of Marijuana Policy
Feedback Session
February 17, 2021Why are we here today?
• To review updates to the first drafts of the omnibus and
hospitality bills
• To provide continued opportunity for community participation
by seeking public feedback on the DRAFT ordinance language
2Legislation Summary
Bill Topic Details
• Revises Denver’s Marijuana Code provisions using an equity lens
and creates opportunities for Social Equity Applicants
• Social Equity
• Aligns Denver’s Marijuana Code provisions with the Colorado
• Changes to existing
1 Omnibus Bill Marijuana Code and state rules
licenses
• Modifies distribution of existing store and cultivation licenses by
• Marijuana Delivery
removing the location cap and location lottery requirements
• Creates a Denver Marijuana Delivery Program
Bill to Enact Marijuana • Marijuana • Creates a Denver Marijuana Hospitality Program to allow for
2
Hospitality Program Consumption lawful marijuana consumption establishments
• Marijuana
Bill to Repeal Cannabis • Repeals citizen-initiated consumption establishment ordinance
3 Consumption
Consumption Pilot Program after enactment of a Denver Marijuana Hospitality Program
• Cleanup
3How did we get here?
2020 Marijuana
Stakeholder Feedback Stakeholder Feedback
Licensing Work Group Ordinance Drafting Ordinance Revision
on First Drafts on Second Drafts
(MLWG)
• In May and June of 2020, • Using feedback from the • Following the release of • Using feedback from the • During this evening’s
EXL held four public MLWG, written the first drafts, EXL held feedback sessions, written feedback session, EXL staff
meetings of the MLWG to comments, meetings with four public stakeholder comments, meetings with will present the changes
gather input on the topics individual stakeholders, feedback sessions in individual stakeholders, to the omnibus and
of delivery, hospitality, and city agencies, EXL and December and January to City Council members, hospitality bills and take
equity, and omnibus CAO developed first drafts gather input from and city agencies, EXL and questions and public
changes to the marijuana of the three bills. community members, the CAO revised the first comments.
licensing code. • The first drafts were marijuana industry, and drafts. • Written comments will be
• Using the MLWG’s input, released publicly on other interested • Second drafts were accepted until bill
EXL developed high-level December 7, 2020. stakeholders. released publicly on introduction on March 2,
conceptual proposals for • EXL briefed each City February 10, 2021. 2021 (date subject to
the ordinances. Council member on the change).
• EXL held a fifth meeting of bill drafts during • EXL and CAO will use this
the MLWG on September December 2020 and feedback to finalize the
29, 2020 to present the January 2021. bill drafts.
concepts and gather
feedback.Fee Updates*
License Type Fee Type Fee for Non-Social Equity Applicants Fee for Social Equity Applicants
Application fee (one-time) $2,000 $1,000 $0
Medical marijuana businesses
License fee (annual) $3,000 $1,500
Medical marijuana off-premises Application fee (one-time) $500 $500 $0
storage facility License fee (annual) $500 $250
Application fee (one-time) Refer to MED Fee Schedule Refer to MED Fee Schedule
Retail marijuana businesses*
License fee (annual) $5,000 $2,500 ($0 for first year)
Retail marijuana off-premises Application fee (one-time) $500 $500 $0
storage facility License fee (annual) $500 $250
Application fee (one-time) $1,000 $500 $1,000 $0
Marijuana delivery permit
License fee (annual) $2,000 $2,000
Hospitality and hospitality and Application fee (one-time) $1,000 $1,000 $0
sales businesses* License fee (annual) $2,000 $2,000
* The fees listed above are set by the City and County of Denver. There may be other fees set by the Colorado Marijuana Enforcement Division that
get distributed to local jurisdictionsUpdated Omnibus Bill Draft:
Reporting to City Council
First Draft New Draft
Explanation
Maintain provision in 6-
210 (d) and add:
By reporting to City Council a year
6-210(d) – The director 6-206(c) – The director before the exclusivity period for other
shall report in writing to shall report in writing license types expires, the Department
city council by July 1, to city council by July 1, and City Council can assess whether
2026 regarding the the exclusivity period needs to be
2023 on the operation of extended and whether any other
the delivery program. exclusive issuance of adjustments need to be made to the
certain licenses to program.
social equity
applicants.Updated Omnibus Bill Draft:
Transfer of Ownership
First Draft New Draft
6-219(b) - Prior to July 1,
2027, any licenses held by Explanation
social equity applicants,
except marijuana transporter This change is responsive to stakeholder
licenses, shall be transferable concerns about maintaining the integrity of the
either to other social equity social equity program by keeping social equity
6-219(b) - Licenses held by
applicants or non-social licenses under ownership of social equity
social equity applicants,
equity applicants upon applicants. This requirement is intended to
except marijuana transporter
approval by the director so prevent non-social equity applicants from
licenses, shall be transferable buying out social equity applicants’ majority
long as fifty-one percent
either to other social equity share in their licenses before the exclusivity
(51%) or more of the license is
applicants or non-social period is over, while still allowing social equity
held by one or more social
equity applicants upon applicants to transfer up to 49% of their license
equity licensees. After July 1,
approval by the director. to non-social equity applicant investors in order
2027, licenses held by social
to raise capital.
equity applicants shall be
transferable either to other
social equity applicants or
non-social equity applicants
upon approval by the director.Updated Omnibus Bill Draft:
Social Impact Plans
First Draft New Draft
6-207(a)(1) - A social impact plan containing the information required by the director, as
well as the following:
6-207(a) – All applications for local licensing shall be made in the a. The name, telephone number, and email address of the person affiliated with the
manner provided by the director. In addition to information required applicant or licensee who is responsible for oversight and implementation of the
by chapter 32 of this Code, the applications shall contain the following social impact plan;
information: b. A description of the procedure(s) the applicant or licensee will use to timely address
(1) A social impact plan containing the information required by the concerns of residents, registered neighborhood organizations, and businesses within
the neighborhood surrounding the licensed premises;
director.
c. A list of all registered neighborhood organizations whose boundaries encompass the
6-222(c)(2) – The social impact plan submitted at renewal shall also location of the licensed premises and a description of the applicant or licensee’s plan
identify outcomes resulting from the social impact plan in place to engage with each registered neighborhood association;
during the previous licensing year. d. A description of the applicant or licensee's diversity and inclusion practices in hiring
and employment, including any specific metrics to be used in measuring the success
of its programs;
e. A description of the applicant or licensee's sustainability practices, including any
specific metrics to be used in measuring the success of its programs;
f. A description of the applicant or licensee's plan to foster participation in the
regulated marijuana industry by people from communities that have previously been
Explanation disproportionately harmed by marijuana prohibition and enforcement in order to
positively impact those communities, including any specific metrics to be used in
measuring the success of its programs; and
These changes are responsive to g. A description of how members of the public can access the applicant's social impact
feedback from stakeholders that plan.
6-222(c)(2) – The social impact plan submitted at renewal shall also identify outcomes
requirements for Social Impact resulting from the social impact plan in place during the previous licensing year using
Plans need to be more clear and the specific metrics identified in the social impact plan for measuring the success of its
include specific metrics. programs.Updated Omnibus Bill Draft:
Security
First Draft New Draft
6-209(a)(3) – Beginning October 1, 2021, medical and
retail marijuana stores shall install and use a secure
safe in a limited access area, which shall be
6-209(a)(3) – Beginning July 1, 2021, medical and incorporated into the building structure or securely
retail marijuana stores shall install and use a secure attached thereto, for overnight storage of all
safe in a limited access area, which shall be processed cannabis and cash. For marijuana-infused
incorporated into the building structure or securely products that must be kept refrigerated or frozen, the Explanation
attached thereto, for overnight storage of cannabis establishment may lock the refrigerated container or
and cash. freezer so long as the appliance is affixed to the
building structure. The director may approve security These changes provide
devices such as vaults and strong rooms that are additional clarity on how
functionally equivalent to safes. licensees can comply with this
requirement, and provides
additional time for licensees
First Draft New Draft to come into compliance.
6-204(19) – Safe means a metal box capable of
being locked securely, constructed in a manner to
prevent opening by human or mechanical force,
No definition of “safe”
or through the use of common tools, including
but not limited to hammers, bolt cutters, crow
bars, or pry bars.Updated Omnibus Bill Draft:
Walk-Up, Drive-Up, and Curbside
First Draft New Draft Explanation
This change clarifies that drive-up, walk-up, and
6-209(a)(4) - Medical and retail curbside service are currently allowed pursuant
marijuana stores shall not to an emergency rule promulgated by the state
provide walk-up or drive-up licensing authority. Allowances for drive-up, walk-
window service or curbside up, and curbside service were initially intended to
pickup. All transactions must facilitate social distancing during the COVID-19
occur within a licensed pandemic, especially as marijuana businesses
were not allowed to deliver in most jurisdictions.
Silent on walk-up, drive-up, and premises. A medical or retail Now that Denver plans to implement marijuana
curbside service marijuana store may provide for delivery, and as the pandemic subsides, these
walk-up or drive-up window measures may be unnecessary in the long-term
service or curbside service to protect public health. Additional analysis and
pursuant to, and in compliance stakeholder input is required to determine
whether and how to allow walk-up and drive-up
with, an emergency rule windows permanently.
promulgated by the state
licensing authority.Updated Omnibus Bill Draft:
Renewal Hearings
First Draft New Draft
6-222(e) – The director may set a hearing on the Explanation
renewal of a medical or retail marijuana
business application in accordance with the
requirements of the Colorado Marijuana Code
and chapter 32 of this Code if:
(1) There is evidence that medical or retail This change more
marijuana business has adversely impacted the accurately and succinctly
health, welfare, or public safety of the Strike 6-222(e)(1-3) of the first draft and
neighborhood in which the medical or retail replace with: captures all circumstances
marijuana business is located; 6-222(e) - There are causes for denial, under which the director
(2) The reasonable requirements of the suspension, revocation, non-renewal or may set a renewal hearing
neighborhood and the desires of the adult other licensing sanctions as provided in
inhabitants as evidenced by petitions,
for a medical or retail
chapter 32 of this Code, this article V, or
remonstrances, or otherwise indicate that a rules and regulations promulgated thereto; marijuana business.
medical or retail marijuana store license should
not be renewed;
(3) The number and availability of other medical
or retail marijuana stores in or near the
neighborhood under consideration indicate
that a medical or retail marijuana store license
should not be renewed;Updated Omnibus Bill:
Causes for Denial
First Draft New Draft
Explanation
6-223(a) - In addition to
the grounds set forth in This cause for denial for a new license
the Colorado Marijuana application (not a renewal license
Code and chapter 32 of application) currently exists in state law
this Code, any (see C.R.S. 44-10-313(7).) It also exists in
application submitted the Denver Revised Municipal Code*
6-223(a)(4) was pursuant to this article currently. Including the causes for denial
unintentionally omitted that exist in state code provides notice to
V shall be denied if: applicants of all the reasons for which
from first draft.
(4) - A second or their license application may be denied.
additional license to
the same applicant
would have the effect
of restraining
competition;
*D.R.M.C. 6-212(c)(2)(b) and 24-508.5(c)(2)(b)Updated Omnibus Bill Draft:
Delivery
First Draft New Draft Explanation
Given that tipping could occur through
6-210(c)(5) – Marijuana delivery electronic payments, in kind gifts, or
permittees shall not accept any other methods of payment, a prohibition
cash gratuity for the delivery of Strike this provision on cash tips would not accomplish the
regulated marijuana from goal of deterring diversion. A prohibition
on all tipping would be unenforceable.
customers or patients.
Explanation
First Draft New Draft
Lowering the inventory limit for enclosed
6-210(c)(5) – An enclosed delivery motor delivery vehicles from $10,000 to $5,000 in
6-210(c)(6) – At no time shall the retail vehicle shall not contain more than $5,000 retail value of marijuana is responsive to
value of the cannabis within the vehicle in retail value of cannabis. A delivery stakeholder concerns about safety and
exceed the amounts established by state motor vehicle that is not enclosed shall diversion. This change is intended to
law. not contain more than $2,000 in retail reduce the amount of marijuana that could
value of cannabis. be diverted to the illicit market in the event
of a robbery.Updated Omnibus Bill Draft:
Off-Premise Storage Facilities
First Draft New Draft
6-215(b) Strike 6-215(b)(2-4) in the first draft and add:
Explanation
(2) A medical or retail marijuana off-premises
storage facility permittee shall not possess 6-215(b)(2) - Except as provided herein, a
unsealed packages or containers of cannabis medical or retail marijuana off-premises This change aligns with the state’s
on the licensed premises. storage facility permittee shall not possess allowance for activities that can occur at
(3) A medical or retail marijuana off-premises unsealed packages or containers of cannabis an off-premises storage facility owned by
storage facility permittee shall not open on the licensed premises, open sealed a store that has a delivery permit. This
sealed packages or containers of cannabis on packages or containers of cannabis on the will allow stores to use their off-premises
the licensed premises. licensed premises, or re-package cannabis on storage facilities to prepare orders for
the licensed premises. A marijuana store with delivery by transporters.
(4) A medical or retail marijuana off-premises
storage facility permittee shall not re-package a valid delivery permit may use its own off-
cannabis on the licensed premises. premises storage facility permit to package,
label, and fill orders for delivery of regulated
marijuana to a patient or customer after the
marijuana store receives an order for delivery.Updated Omnibus Bill Draft:
Advertising
First Draft New Draft
6-204(1) – Advertise, Explanation
6-204(1) – Advertise, advertising, or advertisement
advertising, or advertisement means the act of drawing the This change ensures that marijuana
hospitality businesses are subject to the
means the act of drawing the public’s attention to a medical same advertising restrictions as other
public’s attention to a medical or retail marijuana business in marijuana businesses. Restricting
or retail marijuana business in order to promote the sale of advertising of marijuana consumption
order to promote the sale of cannabis by a medical or retail aligns with the public health goal of
cannabis by a medical or retail marijuana business or limiting normalization of marijuana use
consumption of marijuana in a in the eyes of youth.
marijuana business.
marijuana business.Updated Hospitality Bill Draft:
Security
First Draft New Draft
6-218(a)(12) - A retail marijuana
hospitality and sales business licensee Explanation
shall install and use a safe in a limited
access area, which shall be
Like stores, hospitality and
incorporated into the building
sales businesses will store
structure or securely attached
cannabis on the premises
thereto, for overnight storage of all
No requirement for hospitality and overnight and have
processed cannabis and cash. For
sales businesses to use a safe for conspicuous signage
marijuana-infused products that must
storage of cannabis and cash indicating they are marijuana
be kept refrigerated or frozen, the
overnight businesses. As a result, they
establishment may lock the
may face an increased risk of
refrigerated container or freezer, so
burglary and should be
long as the appliance is affixed to the
subject to the same safe
building structure. The director may
requirement as stores.
approve security devices such as
vaults and strong rooms that are
functionally equivalent to safes.Updated Hospitality Bill Draft
First Draft New Draft Explanation
After hearing feedback from stakeholders that
the prohibition on the use of LPG would limit
6-217(b)(6) - A marijuana consumers’ ability to ignite smokeable and
hospitality business licensee inhalable marijuana products, the Department
shall not use or allow any and the Fire Department reassessed the need
Strike this provision for this prohibition and determined that the
other person to use liquified use of LPG in a consumption area would not
petroleum gas within a create a significant public safety risk. DFD
consumption area. operation permits may be needed in some
circumstances.
First Draft New Draft
Explanation
6-217(c)(4) - A mobile This change clarifies that mobile
marijuana hospitality businesses are
marijuana hospitality subject to the same advertising
business shall ensure that restrictions as other marijuana
Silent on external markings
the motor vehicle has no businesses. It also aligns with the
on mobile hospitality
external markings, words, public health priority of limiting
vehicles youth exposure to normalization of
or symbols that constitute
advertising as defined in marijuana consumption.
section 6-204(1).Next Steps
Continued Stakeholder Outreach
Additional ways to provide feedback
• Written comment can be sent to
marijuanainfo@denvergov.org. Written comment
will be accepted until the bill is introduced, but
the sooner it is received the more time the
Department will have to consider incorporating
the feedback.
• You may contact marijuanainfo@denvergov.org
to request a meeting to learn more or provide
feedback.
19The City Council Process
Agency files Bill City Council Mayor-Council First Reading at Second Reading at
Request Committee Meeting City Council City Council
• Once EXL feels that a bill is • March 2, 2021 – Finance • Once a bill passes out of • A bill must be read twice • Second Reading occurs at
ready to be considered by and Governance committee, it must be before it can be voted on. the next City Council
City Council, we file a • Once a bill request is filed, announced at a formal • The First Reading usually meeting after First Reading
formal Bill Request. the bill is assigned to a City meeting where the Mayor occurs on the Monday after (usually one week later).
Council committee. and members of City a bill has been announced • City Council members vote
• Agency representatives Council are present. at Mayor-Council. on the bill for final
present the bill and answer • City Council members may approval.
questions. ask questions of EXL
• There is time at the end of representatives.
the meeting reserved for
public comment.
• After public comment,
committee members vote
on whether the bill should
go to the full City Council.Questions?
Email marijuanainfo@denvergov.org
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